Managing tomorrow's workforce

October 09, 2009

Much has been written about what the workplace of the future will look like.

Two years ago, I did a blog entry looking at future workplace trends as detailed in a PricewaterhouseCoopers report, Managing Tomorrow’s People. In that report, PwC foreshadowed big corporates turning into mini states, specialist workers and companies joining forces in networks, and environmental issues taking over the agenda. Now PwC has done an update in the wake of the global financial crisis. Let’s take a look to see what’s changed.

Like the earlier report, the updated version envisages three worlds, or three different types of companies: green, blue and orange. The Australian version of the report is here. The Orange world comprises businesses that are fragmented, small, lean and nimble, companies that have skeleton staff but which rely on an extensive network of suppliers. Blue types of companies are big corporations with solid size, talent, technology and leadership. These sorts of companies pay oversized bonuses to great performers. The Green world is filled with companies that have a powerful social conscience with “green” policies. There are many energy, automotive and financial service companies in that space. In the wake of the financial crisis, they are also very focused on reducing risk.

The report looks at some potential trends that will emerge out of the financial crisis.

In the Green space, companies will be looking at ways to motivate staff beyond salary. It sees them introducing initiatives where employees can earn bonus credits that could earn them gigs like being seconded to an overseas office, government department or non-government organisation, learning a new vocation or language, getting paid sabbaticals or extended maternity and paternity leave, or receiving subsidies for green improvements to the home. Following the financial meltdown, employees are rewarded for not taking excessive risks.

Orange companies have only a handful of staff and instead rely extensively on contractors, known as “team workers”. In response to the lay off, these sorts of companies would track layoffs at competitor firms and created social networking sites for the jobless to share experiences and advice. This gave rise to a new social networking system called Workbook where candidates could post their information for a small fee. What these radical innovations did was provide these companies with an enormous pool of potential talent, perfect for dealing with the skills shortage.

Companies in the Blue space are committed to turning human resources into a competitive advantage to build up teams of talented and motivated employees.

The report identifies a number of issues that are going to make the world of work look very different in the next few years. First, they will have to accept that Generation Y has a completely different take on work. Many millennials would be comfortable with an employer providing personal services such as housing/food/regular doctor and dentist appointments. Secondly, environmental issues will change the way companies operate, not only in terms of legislation but also as opportunities that could provide them with a competitive advantage. They will also have to work hard to restore the trust that was shattered in the financial crisis. And also, the health and well being of the workforce will be a key focus because unhealthy or unhappy workers will result in reduced productivity.

That’s PwC’s take on the future, What do you think the workplace of the future will look like? And how will the financial crisis reshape it? Have you noticed any changes coming in now?

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Recent comments

I think it is interesting to find that your most discussed subject was on Australia's population growth. More than sixty comments compared with this subject matter of ??? comments.

Is it that people just don't care what the future workplace will be like?

Being a Peak Oil believer I wouldn't be surprised to see most of us having to return to the hard labour of farming and working the fields.

Comments Terms & Conditions

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Leon Gettler is a contributor to The Age, specialising on management issues. His interests include business ethics, corporate governance and the intricacies of the US Sarbanes-Oxley ruling. He is the author of two books, including Organisations Behaving Badly: A Greek tragedy of corporate pathology, which focuses on the forces that lead smart executives to make dumb decisions.